A method and system for estimating a parameter of an electric machine, including a controller and a switching device, the controller executes a parameter estimation process, which is responsive to at least one of: a current value and a torque command and the resultant of the parameter estimation process representing an estimated parameter of the electric machine. The parameter estimation includes a method for estimating a temperature of the electric machine comprising: a temperature sensor operatively connected to and transmitting a temperature signal corresponding to a measured temperature to a controller, which executes a temperature estimation process responsive to a temperature signal from a temperature sensor.